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TR-2013-40 APPROP FOR N WESTFIELD ST WATER MAIN �(Q�X13-q.o Qp � '�o 00 ct RESOLUTION TR-2013- L4C A RESOLUTION AUTHORIZING THE BORROWING AND APPROPRIATION IN THE AMOUNT OF$6,340,000 FOR THE NORTH WESTFIELD STREET WATER MAIN IMPROVEMENT PROJECT (Sponsored By: Mayor Richard Cohen) WHEREAS, the current 54 inch water transmission main, owned by the Springfield Water and Sewer Commission, and located within North Westfield Street was constructed in 1928; and WHEREAS, currently five of the Town's six interconnections with the Springfield's water supply are on this main; and n 0 WHEREAS, if the main fails the Town of Agawam would be without a water§ �,pplyyt'r, fire protection; and a car WHEREAS, a catastrophic failure occurred on a section of the 54-inch transrwssioh x main in November 2012; and O WHEREAS, testing and evaluation have determined that the water main is at the enj of r its useful life; and CP WHEREAS, the Springfield Water and Sewer Commission are in the process of designing a replacement for this main contingent upon our North Westfield Street Water Main Project; WHEREAS, the North Westfield Street Water Main Project will create a redundant system in the event of a failure of the water Main; and WHEREAS, the City of Springfield will eventually discontinue use of the current water main; and WHEREAS, it has been determined to be in the best interests of the Town and the residents to proceed with the North Westfield Street Water Main Construction Project. NOW THEREFORE, THE AGAWAM CITY COUNCIL hereby resolves to authorize the following: That $6,340,000.00 is appropriated to pay costs of the North Westfield Street Water Main Project, which includes, but is not limited to: (i) installation of approximately 11,500 feet of 24-inch, 12-inch and 8-inch DI water main, including valves, hydrants, services, fittings and appurtenances on North Westfield Street, (ii) modifications of the Springfield Water and Sewer Commission's existing 42-inch sleeve to accommodate the new 24-inch water main, (iii) final surface restoration, including 2-inch mill and overlay along North Westfield Street, and (iv) a the payment of all other costs incidental and related thereto, and to meet this appropriation, the Treasurer, with the approval of the Mayor, is authorized to borrow said amount under and pursuant to Chapter 44, Section 7(1) of the General Laws, or pursuant to any other enabling authority, and to issue bonds or notes of the Town therefor. / C'4t DATED THIS 1 OF L� k 41- , 2013 PER ORDER OF THE AGAWAM CITY COUNCIL Christopher C. Jo son, President rVE S-TO FORM AND LEGALITY Vincenl dlla4la, Solicitor �oF A�q� TOWN OF AGAWAM Department of Public Works 1000 Suffield Street • Agawam MA 01001 y Tel (413) 821-0600 • Fax (413) 821-0631 Christopher J. Golba — Superintendent �RHTEU MP North Westfield Street Water Main Construction Project The North Westfield Street water main project consists of the installation of approximately 11,500 linear feet of water main starting at the Agawam/Westfield Town lines in North Westfield Street ending at the intersection of North Westfield Street and North Street. The project includes the installation of 8,500 feet of 24 inch water main starting at the intersection of North Street and North Westfield Street to 1023 North Westfield Street. From 1023 North Westfield Street 1,700 feet of 12 inch water main will be installed to the intersection of North Westfield Street and North West Street. From the intersection of North Westfield Street and North West Street, 1,300 feet of 8 inch water main will be installed to the Agawam/Westfield Town lines. The water main installation project is critical to the Town in order to provide redundancy to our water system in the event of the failure of Springfield Water and Sewers 54/48 inch transmission main. The main was installed in 1928. Currently, 5 of our 6 interconnections with the Springfield's water supply are on this main and when the main fails the Town would be without water supply and fire protection. Recently, in November of 2012, a catastrophic failure occurred on a section of the 54 inch transmission main and subsequent evaluation and testing indicated that the water main is, essentially, at the end of its useful life. The Springfield Water and Sewer Commission are in the process of designing a replacement for this main which is contingent on our North Westfield Street water main project. Anticipated costs for the replacement of this main is approximately 30 million dollars and will commence once our project is completed. i MAYORAL ACTION Received this_ 104�'N day of 0C+d)je!N. , 2013 from Council Clerk. 1 Signed by Council President this g'ti'�` day of U tk) �. , 2013. APPROVAL OF LEGISLATION By the powers vested in me pursuant to Article 3, Section 3-6 of the Agawam Charter, as ame ded, I hereby approve the passage of the above legislation on this day of IZ , 2013. ze, Richard A. Cohen, Mayor DISAPPROVAL OF LEGISLATION By the powers vested in me pursuant to Article 3, Section 3-6 of the Agawam Charter, as amended, I hereby veto the passage of the above legislation on this day of 2013 for the following reason(s): Richard A. Cohen, Mayor RETURN OF LEGISLATION TO COUNCIL CLERK Returned to Council Clerk this (; " day of alobtA- , 2013. $4,340,000 Loan _ Project FY15 FYI FY17� D P.W.Facility Altemtian•Water S 65,268 S 63,504 $ 63,505 Water Main Oesgn•Main 6 Suffield Streets $ - j - 3 - Water Main Construction-Main 5 Suftid Streets S - $ . S - Water Man Conzaurlion-North Wesdreld Sheet $ 392.607 i 393,602 $ 374,596 Water Man Construction-Reed Street S - S $ - Water Man Construction-Silva 5 Elm Streets $ - $ - S Water Man Design•South Street S - $ - j - SWSC Tronsmisslon Main Replaeemant $ 66,323 j 330.463 $ 03.176 Water Main Construction•South Street S S . 3 Net Debt Service-Water Fund $ 524,198 S 627,569 $ 923,277 Total operating Budget+Debt Saivlce $ 4,900,115 S 5,327.195 S 5,566,063 Proposed Rafts Resldentkd i 2.01 S 2.01 S 2.17 Cormmrdwwusmwr,er II Residential S 7.51 S 2.51 S 2.71 S4,640,009 Loan Project FY7S FY76 FYI W` OP.W.Facility Al orations-Water 6 65.268 S 63.504 $ 63,505 Water Main Design•Man 5 Suffield Strwt5 S - S S - Water Main Construction-Main&SuMeld Streets f - Water Main Construction-North Westfield Street S 437,839 j 427,796 S 417.753 Water Main Conatrrcum•Reed Sim" $ - S - f Water Main Construction-Silver 5 Elm Streets S - f - s - Wisher Mein Design.South Street j - $ - $ - SWSC Trantndsaion Main Replacement j 66.323 S 350,463 S 485,176 Water Main Construction-Swth Street $ - S $ Net Debt Service-Water Fund $ 569,430 $ 871,763 S 9K434 Total 0parating Budget+Debt Service S 4,945.346 S 5,371,366 S 5.631,219 Proposed Rates Residential S 2.03 S 2,03 $ 2.19 CertrneroiaVlndustrialiTier II Residen0et i 2.54 S 2.54 S 2.74 f5,340,00.0 Loan Project FYI FY16 FYI O.P.W,Facility A6erations•Water S 65,266 S 03,504 $ 61,505 Water Man Design-Main d Suffield Streets S - j $ - Water Man Construction.Main 6 Suffield Streets S - S i Water Main Construction-North Westfield Sheet 3 493,070 $ 471.989 S 460,909 Water Man Construction-Read Street $ f - S - Water Man Conatrtrc0on-S ver 6 EIm Streets S - S - f - Water Main Design-South Street $ - S S SWSC Trans"Usm Main ReloWmmera S 66.323 3 380,463 S 485.176 Water Man Construction-South Street S . S S Not Data SmlcaWater Fund $ 614.661 S 915.956 $ 1,000,590 Total Operating Budget+Debt IllerNt:a S 4,96D,575 $ 5.415.582 $ 5,674.375 Proposed Rot" Residential $ 2.05 S 2,05 S 2,23 Corm miMndustrwTier It Residardlal S 2.58 $ 2.56 S 2.79 $5,940,000 Loan Project FY15 FY16 FYST f DeAlterations-Water 65, S 63,534 $ 63.505 Water Main Design-Mein&SuDeld Streets 5 - j - S � Water Man Construction.Main d Suf7roid Streets $ - $ - $ Water Main Construction-North Westfield Street S 528,301 S 516,183 3 504,085 Water Man Construction-Reed Street $ - S $ - Water Man cons1ruction-ewer E Elrn StraeLs S - j - $ / Water Man Design-South Street S - -j - $ - SWSC Transmbslon Man Replacerrlaa S 66,323 S 350,463 5 485,176 Water Main Construction-South Street S - S $ - Net Debt Service-Water Fund $ 659.892 S 960,150 $ 1.052,746 Total Operating Budget+Debt Service S 5,035,609 S 5,459,776 S 5,717,532 Proposed Rates Residential S 2.07 S 2.07 S 225 C mrnarGatllndustrlaiiTier 13 Residential f 2.59 S 2.59 3 2,82 56 340 OG0 Loan Project FY15 FY16 FYI O_P.W.Facility AAerstions-Water f 65,268 S $3.504 $ 631505 Water Man Design•Man h Suffie d Streets $ - S S - Water Main Construction-Main d SuDleld Streets S - $ . S Water Main Construction-North Westfield Street $ $73,532 S 560.371 s 547,221 Water Main Construction-Reed Street Water Man Construction-Silver A Elm Streets Water Man Design-South Street S SWSC Tnrgmiesion Main Replacement S W.323 S 380,463 S 485,176 Water Main Construction-South Street f S $ . Net Debt Smvic-WeMr Fund S 705,123 S 1.00413" 3 1,095.902 Total Operating Budget+Debt Lervlee 6 5,081.040 $ 5,503,970 $ 5,760,696 Propelled Rate Residential $ 2.09 $ 2.09 $ 2,27 CemmerciaDlndustUVI-let 11 Residential $ 2.61 5 2.61 S 2.34 Springfield Water and Sewer Commission Memorandum Date: Tuesday, October 01, 2013 To: Files From: Robert Stoops Chief Engineer Re: South Transmission Main Cost Impacts On Wholesale Communities In response to a request from Chris Golba from the Town of Agawam, this memo serves to summarize the preliminary construction cost outlays and resulting financing impact to wholesale communities associated with the construction of the new 54/48-inch South Transmission Main. GENERAL The south transmission main located from Provin Mountain through Agawam to the Route 5 rotary has met its useful life. As a result of large main breaks and resulting engineering analyses, the pipe needs to be replaced as soon as possible. The Springfield Water and Sewer Commission(SWSC)applied to the MA Department of Environmental Protection (DEP) for State Revolving Fund (SRF) loans to fund construction costs. The State has indicated that low interest loans (2%) would be made available to the SWSC for approximately $28 million of the expected $35 million dollar project. To finance the balance of the project, the SWSC will likely sell approximately$6.7 million in General Obligation Bonds and fund approximately $250,000 out of revenues and reserves. SOUTH TRANSMISSION MAIN FINAL DESIGN ENGINEERING COSTS The estimated costs for survey, permitting, design and preparation of various bid documents is $1.2 million. The final construction bid documents should be complete by the end of 2013. Bidding will take place in the spring of 2014. SWSC CONSTRUCTION PROJECT PHASES, SCHEDULING AND COSTS The south transmission main project is comprised of phases including: • Phase I includes the installation of some temporary 12-inch diameter HDPE piping to provide redundancy during the course of the project in the event of a main break in an area of Agawam that would be impacted the most. The total cost of phase I is estimated at $100,000. This work is expected to be complete by fall of 2013. • Phase II includes the replacement of a 36-inch diameter gate valve and piping at the Provin Mountain storage tank site. The new gate valve is necessary to isolate the 54/48- inch transmission main which will be taken off line for repair without impacting the proposed new 24-inch main in Agawam. The cost of this work is approximately $150,000. This work is expected to be complete by fall of 2013. • Phase III involves replacing piping and valves at the Provin Mountain site that will connect to the 54/48-inch transmission main. This work is estimated to be complete by June 2014 at a cost of$1.5 million. • Phase IV is construction of the 6.5 mile section of new transmission main,valves, culverts and appurtenances. This portion of the project should nat start until Agawam installs and operates their proposed 24-inch main. Agawam's main will provide the Town with sufficient water volume and pressure during the nearly two-year anticipated construction schedule and in the event of a major main break. The preliminary design cost estimate is $32,000,000 for Phase IV. Assuming Agawam approves its project and awards it as soon as possible, their schedule calls for the 24-inch ductile iron pipe to be operational within a year,or November 2014. The SWSC is basing its schedule on that completion date and will start construction on its main in November 2014. The south transmission main project will need two full construction seasons to complete. The estimated completion date is October 2016. CONSTRUCTION COSTS AND SCHEDULE VARIABLES The information provided herein is based on engineering documents and plans prepared for the SWSC by its consulting engineers. The costs presented herein are preliminary engineering estimates. Actual construction costs will be determined by the bids received, the contract award amount, change orders and change directives that occur in the field. The schedules provided herein are dependent on the MADEP SRF funding requirements, MA state procurement requirements, contractor schedules, means and methods, the Town of Agawam 24-inch main project completion, weather and other miscellaneous variables. PROJECT FUNDING This project is expected to transcend two construction seasons and complete in October of 2016. Therefore we plan to fund this project in three separate funding cycles. The SWSC will issue a General Bond Obligation for an estimated $6.7 million and borrow$28 million from the Massachusetts Water Pollution Abatement Trust(MWPAT). The follow is an estimated funding schedule: 12/1/2013 7/1/2014 7/1/2015 7/1/2016 7/1/2017 7/2/2017 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Years FUNDING AVAILIBLE 2014 2015 2016 2017 2018 2019-2036 General Bond Obligation issuance $ 6,700.000 MWPAT(cycle 1 Interim Funding) $ 14,000,000 MWPAT(cycle 2 Interim Funding) $ 14,000,000 Total Funding $ 6,700,1100 $ 14,000,000 $_ 14,000,000 $ - $ - $ - Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year's DEBT SCHEDULE 2014 2016 2016 2017 2018 2019-2036 General Bond _ $6.7M @ 4%over 20 years $ 542,300 $ 542,300 $ 542,300 $ 542,300 $ 642,300 MWPAT(cyl 1-$14M @ 2%120 yrs) Debt Service Pymt $ 856,200 5 856,200 $ 856,200 $ 856,200 Reserve Requirement first year $ 1,712,400 MWPAT(cyl 2-$14M @ 2%120 yrs) Debt Service Pyrnt $ 856,200 $ 856,200 $ 856,200 Reserve Requirement first year 5 1,712,400 $ - $ 542,300 $ 3,110,900 $ 3.967.100 $ 2,254,700 $ 2,254,700 Agawam's 5 year Consumption Avg. 12.23% 12.23% 12.23% 12.23% 12.23% Agawam's Estimate Project Cost $ ___ $ 66,323 $ 380Z463 $ 485,176 $ 275,750 $, 275,750 In Fiscal Year 2016 and 2017 please note the amounts listed are greater than that of the remaining funding years. This is due to the SWSC's General Bond Resolution's (GBR) Bond Reserve Requirement. Based on the formula within the GBR the SWSC is obligated to fund the Debt Service Reserve Fund as well as the Debt Service Fund equal to two times the current debt service payment. Therefore in first year of both MWPAT funding cycles the Bond Reserve will need to reflect those increases. The above schedule is an estimate for this project only. It does not reflect any future projects or past projects that are nearing or at the end of their financing obligation. Also, other variables that will change each fiscal year are Agawam's annual proportional water consumption. The above percentage reflects a five year average. Both MWPAT funding cycles assume permanent financing within 12 months of interim financing. Permanent financing could also occur within 6 months or 18 months of interim financing. Y Vft To: Barbara Bard October 1, 2013 Fax:413-726-9717 From:Cece Calabrese 2 pages follow—notes from Community Relations Meeting last night Present at meeting: Me,Jim Chicetti, George Bltzas, Paul Cavallo, Dennis Perry, Bob Rossi and Don Rheault Also present: Chet Nicora, Mary McGinnis(sp7)from PVTA, Mr, Lemanski, Lou Conti, Henry Kozlowski Give me a call If you cannot read the notes. we voted 5-0 to send positive recommendation on both matters. Thanks Barbi TO 39Cd 353d9V-1d3 -13VHDIW dG 0680 TZBE:it? SE :0 T E TOZ/TO/9 T to s j� �. �) � - i .ram, •1b, a sus . ar ✓T� OU A4L � V Ik i'ry i MI f''ii! q-3a-13 Sly;. �Tr - LD ,3 - .�..r`--d�►1 �-�..Cls� f bows -Jrs U1 V lV�T arc►ti �-4•►�- Pam, T-s 0- c10 c � tom Uo tQ� rao•, ZB 39Vd 3S3d8V-lV3 13VHOIW W 0680iZ8Eib SE:Di Ei0Z1Te10I Springfield Water and Sewer Commission Memorandum Date: Tuesday, October 01, 2013 To: Files From: Robert Stoops Chief Engineer Re: South Transmission Main Cost Impacts On Wholesale Communities In response to a request from Chris Golba from the Town of Agawam, this memo serves to summarize the preliminary construction cost outlays and resulting financing impact to wholesale communities associated with the construction of the new 54/48-inch South Transmission Main. GENERAL The south transmission main located from Provin Mountain through Agawam to the Route 5 rotary has met its useful life. As a result of large main breaks and resulting engineering analyses, the pipe needs to be replaced as soon as possible. The Springfield Water and Sewer Commission (SWSC) applied to the MA Department of Environmental Protection (DEP) for State Revolving Fund (SRF) loans to fund construction costs. The State has indicated that low interest loans(2%) would be made available to the SWSC for approximately $28 million of the expected $35 million dollar project. To finance the balance of the project, the SWSC will likely sell approximately$6.7 million in General Obligation Bonds and fund approximately $250,000 out of revenues and reserves. SOUTH TRANSMISSION MAIN FINAL DESIGN ENGINEERING COSTS The estimated costs for survey, permitting, design and preparation of various bid documents is $l.2 million. The final construction bid documents should be complete by the end of 2013. Bidding will take place in the spring of 2014. SWSC CONSTRUCTION PROJECT PHASES, SCHEDULING AND COSTS The south transmission main project is comprised of phases including: • Phase I includes the installation of some temporary 12-inch diameter HDPE piping to provide redundancy during the course of the project in the event of a main break in an area of Agawam that would be impacted the most. The total cost of phase I is estimated at $100,000. This work is expected to be complete by fall of 2013. • Phase II includes the replacement of a 36-inch diameter gate valve and piping at the Provin Mountain storage tank site. The new gate valve is necessary to isolate the 54/48- inch transmission main which will be taken off line for repair without impacting the proposed new 24-inch main in Agawam. The cost of this work is approximately $150,000. This work is expected to be complete by fall of 2013. • Phase III involves replacing piping and valves at the Provin Mountain site that will connect to the 54/48-inch transmission main. This work is estimated to be complete by June 2014 at a cost of$1.5 million. • Phase IV is construction of the 6.5 mile section of new transmission main, valves, culverts and appurtenances. This portion of the project should not start until Agawam installs and operates their proposed 24-inch main. Agawam's main will provide the Town with sufficient water volume and pressure during the nearly two-year anticipated construction schedule and in the event of a major main break. The preliminary design cost estimate is $32,000,000 for Phase IV. Assuming Agawam approves its project and awards it as soon as possible, their schedule calls for the 24-inch ductile iron pipe to be operational within a year, or November 2014. The SWSC is basing its schedule on that completion date and will start construction on its main in November 2014. The south transmission main project will need two full construction seasons to complete. The estimated completion date is October 2016. CONSTRUCTION COSTS AND SCHEDULE VARIABLES The information provided herein is based on engineering documents and plans prepared for the SWSC by its consulting engineers. The costs presented herein are preliminary engineering estimates. Actual construction costs will be determined by the bids received, the contract award amount, change orders and change directives that occur in the field. The schedules provided herein are dependent on the MADEP SRF funding requirements, MA state procurement requirements, contractor schedules, means and methods, the Town of Agawam 24-inch main project completion, weather and other miscellaneous variables. PROJECT FUNDING This project is expected to transcend two construction seasons and complete in October of 2016. Therefore we plan to fund this project in three separate funding cycles. The SWSC will issue a General Bond Obligation for an estimated $6.7 million and borrow$28 million from the Massachusetts Water Pollution Abatement Trust(MWPAT). The follow is an estimated funding schedule: Y 12/1/2013 7/1/2014 7/1/201.5 7/1/2016 7/1/2017 7/2/2017 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Years FUNDING AVAILISLE 2014 2016 2016 2017 2018 .2019-2036 General Bond Obligation issuance $ 6,700.000 MWPAT(cycle 1 Interim Funding) $ 14,000,000 MWPAT(cycle 2 Interim Funding) _ $ 14,000,000 _ Total Funding $ 6,700,000 $ 14,000,000 $ 14,000,000 $ - $ Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Years DEBT SCHEDULE 2014 2015 2016 2017 2018 2019-2036 General Bond $6.7M @ 4%over 20 years $ 542,300 $ 542,300 S 542,300 $ 542,300 $ 542,300 M WPAT(cyl 1414M @ 2%120 yrs) Debt Service Pyml $ 856,200 $ 856,200 $ 856,200 $ 856,200 Reserve Requirement first year $ 1,712,400 M WPAT(cyl 2414M @ 2%120 yrs) Debt Service Pymt $ 856,200 $ 856,200 $ 856.200 Reserve Requirement first year 5 1,712,400 $ - $ 542,300 $ 3,110,900 $ 3,967,100 $ 2.254,700 $ 2,254,700 Agawam's 5 year Consumption Avg. 12,23% 12,23% 12.23% 12.23% 12.23% Agawam's Estimate Project Cost $ - $ 66,323_ $ 380,463 $ 485,176 $ 276,760 $ 276,760 In Fiscal Year 2016 and 2017 please note the amounts listed are greater than that of the remaining funding years. This is due to the SWSC's General Bond Resolution's (GBR) Bond Reserve Requirement. Based on the formula within the GBR the SWSC is obligated to fund the Debt Service Reserve Fund as well as the Debt Service Fund equal to two times the current debt service payment. Therefore in first year of both MWPAT funding cycles the Bond Reserve will need to reflect those increases. The above schedule is an estimate for this project only. It does not reflect any future projects or past projects that are nearing or at the end of their financing obligation. Also, other variables that will change each fiscal year are Agawam's annual proportional water consumption. The above percentage reflects a five year average. Both MWPAT funding cycles assume permanent financing within 12 months of interim financing. Permanent financing could also occur within 6 months or 18 months of interim financing. Springfield Water and Sewer Commission Memorandum Date: Tuesday, October 01, 2013 To: Files From: Robert Stoops Chief Engineer . Re: South Transmission Main Cost Impacts On Wholesale Communities In response to a request from Chris Golba from the Town of Agawam,this memo serves to summarize the preliminary construction cost outlays and resulting financing impact to wholesale communities associated with the construction of the new 54/48-inch South Transmission Main. GENERAL The south transmission main located from Provin Mountain through Agawam to the Route 5 rotary has met its useful life. As a result of large main breaks and resulting engineering analyses, the pipe needs to be replaced as soon as possible. The Springfield Water and Sewer Commission(SWSC)applied to the MA Department of Environmental Protection (DEP) for State Revolving Fund (SRF) loans to fund construction costs. The State has indicated that low interest loans (2%) would be made available to the SWSC for approximately $28 million of the expected $35 million dollar project. To finance the balance of the project, the SWSC will likely sell approximately$6.7 million in General Obligation Bonds and fund approximately $250,000 out of revenues and reserves. SOUTH TRANSMISSION MAIN FINAL DESIGN ENGINEERING COSTS The estimated costs for survey,permitting, design and preparation of various bid documents is $1.2 million. The final construction bid documents should be complete by the end of 2013. Bidding will take place in the spring of 2014. SWSC CONSTRUCTION PROJECT PHASES, SCHEDULING AND COSTS The south transmission main project is comprised of phases including: • Phase I includes the installation of some temporary 12-inch diameter HDPE piping to provide redundancy during the course of the project in the event of a main break in an area of Agawam that would be impacted the most. The total cost of phase I is estimated at $100,000. This work is expected to be complete by fall of 2013. • Phase I1 includes the replacement of a 36-inch diameter gate valve and piping at the Provin Mountain storage tank site. The new gate valve is necessary to isolate the 54148- inch transmission main which will be taken off line for repair without impacting the proposed new 24-inch main in Agawam. The cost of this work.is approximately $150,000. This work is expected to be complete by fall of 2013.. • Phase III involves replacing piping and valves at the Provin Mountain site that will connect to the 54148-inch transmission main. This work is estimated to be complete by June 2014 at a cost of$1.5 million. • Phase IV is construction of the 6.5 mile section of new transmission main, valves, culverts and appurtenances. This portion of the project should not start until Agawam installs and operates their proposed 24-inch main. Agawam's main will provide the Town with sufficient water volume and pressure during the nearly two-year anticipated construction schedule and in the event of a major main break. The preliminary design cost estimate is $32,000,000 for Phase IV. Assuming Agawam approves its project and awards it as soon as possible, their schedule calls for the 24-inch ductile iron pipe to be operational within a year, or November'2014. The SWSC is basing its schedule on that completion date and will start construction on its main in November 2014. The south transmission main project will need two full construction seasons to complete. The estimated completion date is October 2016. CONSTRUCTION COSTS AND SCHEDULE VARIABLES The information provided herein is based on engineering documents and plans prepared for the SWSC by its consulting engineers. The costs presented herein are preliminary engineering estimates. Actual construction costs will be determined by the bids received, the contract award amount, change orders and change directives that occur in the field. The schedules provided herein are dependent on the MADEP SRF funding requirements, MA state procurement requirements, contractor schedules, means and methods, the Town of Agawam 24-inch main project completion, weather and other miscellaneous variables. PROJECT FUNDING This project is expected to transcend two construction seasons and complete in October of 2016. Therefore we plan to fund this project in three separate funding cycles. The SWSC will issue a General Bond Obligation for an estimated $6.7 million and borrow $28 million from the Massachusetts Water Pollution Abatement Trust(MWPAT). The follow is an estimated funding schedule: J . 12/1/2013 7/1/2014 7/1/2015 7/1/2016 7/1/2017 7/2/2017 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year's FUNDING AVAILIBLE 2014 2015 2016 2017 2010 2019-2036 General Bond Obligation issuance $ 6,700,000 MWPAT(cycle 1 Interim Funding) $ 14,000,000 MWPAT(cycle 2 Interim Funding) _ $ 14,00Q000 Total Funding $ 6,700,000 $ 14,000,000 $ 14,000,000 $ - $ - $ - a Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year's DEBT SCHEDULE 2014 2015 2016 2017 2018 2019-2036 General Bond S6.71V @ 4%over 20 years $ 542,300 $ 542,300 S 542,300 $ 542,300 $ 542,300 MWPAT(cyl 1-$14M @ 2%120 yrs) Debt Service Pymt $ 856,200 $ 856,200 $ 856,200 $ 856,200 Reserve Requirement first year $ 1,712,400 MIN PAT(cyl 2-$14M @ 2%120 yrs) Debt Service Pymt. $ 856,200 $ 856,200 $ 856,200 Reserve Requirement first year $ 1,712,400 $ - $ 542,300 $ 3,110,900 $ 3,967,100 $ 2,254,700 $ 2,254.700 Agawam's 5 year Consumption Avg. 12.23% 12.23% 12.23% 12.23% 12.23% Agawam's Estimate Project Cost $ - $ 66,323 $ 380,463 $ , 485,176 $ 275160 $ 276,750 In Fiscal Year 2016 and 2017 please note the amounts listed are greater than that of the remaining funding years. This is due to the SWSC's General Bond Resolution's (GBR) Bond Reserve Requirement. Based on the formula within the GBR the SWSC is obligated to fund the Debt Service Reserve Fund as well as the Debt Service Fund equal to two times the current debt service payment. Therefore in first year of both MWPAT funding cycles the Bond Reserve will need to reflect those increases. The above schedule is an estimate for this project only. It does not reflect any future projects or past projects that are nearing or at the end of their financing obligation. Also, other variables that will change each fiscal year are Agawam's annual proportional water consumption. The above percentage reflects a five year average. Both MWPAT funding cycles assume permanent financing within 12 months of interim financing. Permanent financing could also occur within 6 months or 18 months of interim financing. • Springfield Water and Sewer Commission Memorandum Date: Tuesday, October 01, 2013 To: Files From: Robert Stoops Chief Engineer Re: South Transmission Main Cost Impacts On Wholesale Communities In response to a request from Chris Golba from the Town of Agawam, this memo serves to summarize the preliminary construction cost outlays and resulting financing impact to wholesale communities associated with the construction of the new 54/48-inch South Transmission Main. GENERAL The south transmission main located from Provin Mountain through Agawam to the Route 5 rotary has met its useful life. As a result of large main breaks and resulting engineering analyses, the pipe needs to be replaced as soon as possible. The Springfield Water and Sewer Commission (SWSC) applied to the MA Department of Environmental Protection (DEP) for State Revolving Fund (SRF) loans to fund construction costs. The State has indicated that low interest loans (2%) would be made available to the SWSC for approximately $28 million of the expected $35 million dollar project. To finance the balance of the project, the SWSC will likely sell approximately$6.7 million,in General Obligation Bonds and fund approximately $250,000 out of revenues and reserves. SOUTH TRANSMISSION MAIN FINAL DESIGN ENGINEERING COSTS The estimated costs for survey, permitting, design and preparation of various bid documents is $1.2 million. The final construction bid documents should be complete by the end of 2013. Bidding will take place in the spring of 2014. SWSC CONSTRUCTION PROJECT PHASES, SCHEDULING AND COSTS The south transmission main project is comprised of phases including: • Phase I includes the installation of some temporary 12-inch diameter HDPE piping to provide redundancy during the course of the project in the event of a main break in an area of Agawam that would be impacted the most. The total cost of phase I is estimated at $100,000. This work is expected to be complete by fall of 2013. • Phase II includes the replacement of a 36-inch diameter gate valve and piping at the Provin Mountain storage tank site. The new gate valve is necessary to isolate the 54/48- inch transmission main which will be taken off line for repair without impacting the proposed new 24-inch main in Agawam. The cost of this work is approximately $150,000. This work is expected to be complete by fall of 2013. • Phase III involves replacing piping and valves at the Provin Mountain site that will connect to the 54/48-inch transmission main. This work is estimated to be complete by June 2014 at a cost of$l.5 million. • Phase IV is construction of the 6.5 mile section of new transmission main, valves, culverts and appurtenances. This portion of the project should not start until Agawam installs and operates their proposed 24-inch main. Agawam's main will provide the Town with sufficient water volume and pressure during the nearly two-year anticipated construction schedule and in the event of a major main break. The preliminary design cost estimate is $32,000,000 for Phase IV. Assuming Agawam approves its project and awards it as soon as possible, their schedule calls for the 24-inch ductile iron pipe to be operational within a year, or November 2014. The SWSC is basing its schedule on that completion date and will start construction on its main in November 2014. The south transmission main project will need two full construction seasons to complete. The estimated completion date is October 2016. CONSTRUCTION COSTS AND SCHEDULE VARIABLES The information provided herein is based on engineering documents and plans prepared for the SWSC by its consulting engineers. The costs presented herein are preliminary engineering estimates. Actual construction costs will be determined by the bids received, the contract award amount, change orders and change directives that occur in the field. The schedules provided herein are dependent on the MADEP SRF funding requirements, MA state procurement requirements, contractor schedules, means and methods, the Town of Agawam 24-inch main project completion, weather and other miscellaneous variables. PROJECT FUNDING This project is expected to transcend two construction seasons and complete in October of 2016. Therefore we plan to fund this project in three separate funding cycles. The SWSC will issue a General Bond Obligation for an estimated $6.7 million and borrow$28 million from the Massachusetts Water Pollution Abatement Trust (MWPAT). The follow is an estimated funding schedule: c 12/1/2013 7/1/2014 7/1/2015 7/1/2016 7/1/2017 7/2/2017 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year's FUNDING AVAIL]BLE 2014 2015 2016 2017 2018 2019-2036 General Bond Obligation issuance $ 6,700,000 MWPAT(cycle 1 Interim Funding) $ 14,000,000 MWPAT(cycle 2 Interim Funding) L 14,000,000 Total Funding $ 6,700,000 $ 14,000,000 $ 14,000,000 $ - $ - $ Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year's DEBT SCHEDULE 2014 2015 2016 2017 2018 2019-2036 General Bond $6.7M Q 4%over 20 years $ 542,300 $ 542,300 $ 542,300 $ 542,300 $ 542,300 MWPAT(cyl 1-$14M @ 2%120 yrs) Debt Service Pymt $ 856,200 S 956,200 $ 856,200 $ 856,200 Reserve Requirement first year $ 1,712,400 MIN PAT(cyl 2-$14M @ 2%120 yrs) Debt Service Pymt $ 856,200 $ 856,200 $ 856.200 Reserve Requirement first year $ 1,712,400 $ - $ 542,300 $ 3,110,900 $ 3,967,100 $ 2,254,700 $ 2,254,700 Agawam's 5 year Consumption Avg. 12.23% 12.23% 12.23% 12.23% 12.23% Agawam's Estimate Project Cost $ - $ 66,323 $ 380,463 $ 486,176 S_ 275,760 $ 275,760 In Fiscal Year 2016 and 2017 please note the amounts listed are greater than that of the remaining funding years. This is due to the SWSC's General Bond Resolution's (GBR) Bond Reserve Requirement. Based on the formula within the GBR the SWSC is obligated to fund the Debt Service Reserve Fund as well as the Debt Service Fund equal to two times the current debt service payment. Therefore in first year of both MWPAT funding cycles the Bond Reserve will need to reflect those increases. The above schedule is an estimate for this project only. It does not reflect any future projects or past projects that are nearing or at the end of their financing obligation. Also, other variables that will change each fiscal year are Agawam's annual proportional water consumption. The above percentage reflects a five year average. Both MWPAT funding cycles assume permanent financing within 12 months of interim financing. Permanent financing could also occur within 6 months or 18 months of interim financing. RESOLUTION TR-2013- t4C A RESOLUTION AUTHORIZING THE BORROWING AND APPROPRIATION IN THE AMOUNT OF$6,340,000 FOR THE NORTH WESTFIELD STREET WATER MAIN IMPROVEMENT PROJECT (Sponsored By: Mayor Richard Cohen) WHEREAS, the current 54 inch water transmission main, owned by the Springfield Water and Sewer Commission, and located within North Westfield Street was constructed in 1928; and WHEREAS, currently five of the Town's six interconnections with the Springfield's water supply are on this main; and WHEREAS, if the main fails the Town of Agawam would be without a water supply or fire protection; and WHEREAS, a catastrophic failure occurred on a section of the 54-inch transmission main in November 2012; and WHEREAS, testing and evaluation have determined that the water main is at the end of its useful life; and WHEREAS, the Springfield Water and Sewer Commission are in the process of designing a replacement for this main contingent upon our North Westfield Street Water Main Proj ect; ti O a � WHEREAS, the North Westfield Street Water Main Project will create a redtnd , system in the event of a failure of the water Main; and r`"c, n� WHEREAS, the City of Springfield will eventually discontinue use of the currentvat main; and 3 D�} WHEREAS, it has been determined to be in the best interests of the Town a& the n residents to proceed with the North Westfield Street Water Main Construction Project, a- r-" NOW THEREFORE, THE AGAWAM CITY COUNCIL hereby resolves to authorize the following: That $6,340,000.00 is appropriated to pay costs of the North Westfield Street Water Main Project, which includes, but is not limited to: (i) installation of approximately 11,500 feet of 24-inch, 12-inch and 8-inch DI water main, including valves, hydrants, services, fittings and appurtenances on North Westfield Street, (ii) modifications of the Springfield Water and Sewer Commission's existing 42-inch sleeve to accommodate the new 24-inch water main, (iii) final surface restoration, including 2-inch mill and overlay along North Westfield Street, and (iv) the payment of all other costs incidental and related thereto, and to meet this appropriation, the Treasurer, with the approval of the Mayor, is authorized to borrow said amount under and pursuant to Chapter 44, Section 7(l) of the General Laws, or pursuant to any other enabling authority, and to issue bonds or notes of the Town therefor. DATED THIS OF , 2013 PER ORDER OF THE AGAWAM CITY COUNCIL Christopher C. Johnson, President PP OVE S�TO FORM AND LEGALITY Vincen ia, Solicitor i FA y TOWN OF AGAWAM Department of Public Works 1000 Suffield Street • Agawam MA 01001 y Tel (413) 821-0600 • Fax (413) 821-0631 �op�Q Py�1 Christopher J. Golba — Superintendent RATED M North Westfield Street Water Main Construction Project The North Westfield Street water main project consists of the installation of approximately 11,500 linear feet of water main starting at the Agawam/Westfield Town lines in North Westfield Street ending at the intersection of North Westfield Street and North Street. The project includes the installation of 8,500 feet of 24 inch water main starting at the intersection of North Street and North Westfield Street to 1023 North Westfield Street. From 1023 North Westfield Street 1,700 feet of 12 inch water main will be installed to the intersection of North Westfield Street and North West Street. From the intersection of North Westfield Street and North West Street, 1,300 feet of 8 inch water main will be installed to the Agawam/Westfield Town lines. The water main installation project is critical to the Town in order to provide redundancy to our water system in the event of the failure of Springfield Water and Sewers 54/48 inch transmission main. The main was installed in 1928. Currently, 5 of our 6 interconnections with the Springfield's water supply are on this main and when the main fails the Town would be without water supply and fire protection. Recently, in November of 2012, a catastrophic failure occurred on a section of the 54 inch transmission main and subsequent evaluation and testing indicated that the water main is, essentially, at the end of its useful life. The Springfield Water and Sewer Commission are in the process of designing a replacement for this main which is contingent on our North Westfield Street water main project. Anticipated costs for the replacement of this main is approximately 30 million dollars and will commence once our project is completed.